Nationalisation in Venezuela

15 May 2007

President Hugo Chavez of Venezuela has built up the pace of turning Venezuela into a socialist state with sweeping reforms, including extensive nationalisation. This has always been a controversial policy (not least with the private companies which will be taken into state ownership) and threatens to create further social tension in Venezuela.

What are the economic implications of the creation of a ‘socialist state’?

2.

Many of the poorest in Venezuela do not have full access to key services such as telecoms. Assess the extent to which nationalisation will help extend the reach of these services to all groups in society.

3.

Discuss the arguments for and against bringing key industries into state ownership.